Washington D.C. Nonprofit Files For Bankruptcy

According to the Washington Post, HandsOn Greater DC Cares, a nonprofit known for its large-scale community service volunteer projects, filed for Chapter 7 bankruptcy.

“With the downturn in the economy over the last several years, our nonprofit has found itself poorly positioned to sustain the funding necessary to support programs across the community,” the organization said on its website.

Court documents indicate that the nonprofit had $530,964 in debts and $34,698 in property assets. The largest creditor in its case is Bank of America, which is owed $162,370. Employees told the Post that the organization had doubled its staff in 2010 and relocated to a new office space that went through renovations. However, the following year, HandsOn Greater DC Cares reported only $1.1 million in revenue and struggled to pay its bills and employees, cutting staff from 25 workers to three full-time workers.

“The business model they chose was not sustainable for them,” Emily Gilliland, executive director of HandsOn Network, the national parent organization of Greater DC Cares told the Post.

HandsOn Greater DC Cares is 24 years old, and organized many major events around holidays including the Martin Luther King Day of Service and the 9/11 Day of Service.

Many people who helped fund the nonprofit were caught off-guard by the bankruptcy filing. “We had just done a project with them,” A. Scott Bolden, managing partner of Reed Smith’s D.C. office told the Post. “Doing projects with them provided our team with a ready-made opportunity to do service that was already managed. They made it simple for us.”

Much like it will for HandsOn Greater DC Cares, a personal Chapter 7 bankruptcy allows someone to discharge debts like credit card balances and medical bills. When you file for bankruptcy, an automatic stay takes effect, and creditors cannot pursue legal action against you or garnish wages.

It should be noted that when you file for Chapter 7 bankruptcy, a debt liquidation process takes place, reducing your financial burden and allowing you to pay for the non-dischargeable debts. In order to qualify for Chapter 7 bankruptcy, you must determine your eligibility through “the means test,” which examines your income.

If you are struggling with debts or thinking about filing for Chapter 7 bankruptcy, you can contact our Washington DC and Maryland bankruptcy lawyer now for a free consultation.

Law Firm of Kevin D. Judd

Judd’s Judgment: Bankruptcy cases must be filed where a debtor resides or has resided for the greater part of the last 180 days.



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